There are two main internationalization strategies, depending on whether the purpose of this process is the development and expansion of the company or its diversification.
In development and expansion strategies, the foreign market is considered an extension of the domestic market. The pillars of this strategy are exports, licensing, franchising and the creation of partnerships.
By expanding exports, the company maintains its production in a single country that will export goods to various foreign markets. Exports can involve large investments, but expose the company to a low risk.
The license grant allows third-party companies abroad to produce and distribute the company’s products. This is an effective tool if you have specialized know-how, but scarce internal resources to use in the expansion strategy.
Franchising allows a cost-effective expansion of retail and services, but involves a loss of control over the supply chain with the possibility that the offer will be differentiated.
Finally, forging strategic alliances helps companies to access new markets more easily, allows them to adapt technical standards more quickly and reduce costs thanks to the use of the same supply and distribution networks.
Diversification strategies are elaborated when the company decides to develop new products or to enter new markets with expansion into sectors that are more or less similar to their own.
This strategy is preferred by companies that do not intend to depend too much on a single sector and want to spread the risks in different business areas, in the event of stagnation in sales due to a decrease in demand, or when the available resources are the key factors for competing successfully in other business areas or when the effectiveness of a brand can be leveraged in other sectors.
In the delicate internationalization process, EURISKON helps companies interested in the Albanian market to correctly assess the internal context, proposing a range of specific solutions to effectively manage the entire process.
